Touchstone Balanced Fund on SAP SE
Thesis
The fund initiated a position in SAP during Q2 as it modestly increased equity exposure. No company-specific valuation or catalyst is provided in the commentary, so the investment is best understood through the fund's broader equity discipline. That discipline emphasizes high-quality companies with durable competitive advantages, strong returns on capital and pricing power. Management remains constructive on equities while acknowledging that overall market valuations are elevated.
“initiating positions in QXO, Inc. (Industrials sector), SAP SE (IT sector), Blackstone, Inc. (Financials sector), and Cencora, Inc.”
Key risks
- Equity valuations are expensive relative to history
- Continued policy and geopolitical uncertainty